Cerrado Gold – Feasibility Study Results At The Monte Do Carmo Gold Project In Brazil And Production Update From The Minera Don Nicolas Project In Argentina
Mark Brennan, Founder, CEO, and Director of Cerrado Gold Inc (TSX.V: CERT) (OTCQX: CRDOF), joins us to outline the key metrics and takeaways from the Feasibility Study at the Monte Do Carmo Gold Project in Brazil and a production and exploration update from Minera Don Nicolas Project in Argentina.
Key Highlights from the Monte Do Carmo Feasibility Study:
- After-Tax NPV of US$369 million and IRR of 32%
- Average annual gold production of 94,797 ounces per annum over 9 year Life of Mine (“LOM”)
- Average AISC of US$711 per ounce over LOM
- Initial Capex of US$186.6 million (including US$15.8 million contingency)
- 2:1 ratio of NPV over Initial Capex
- Annual average free cash flow of $85 million over the LOM, with total cumulative after-tax free cash flow of $562 million over LOM
- Initial Proven and Probable Reserves of 895 koz of Gold (16.8 Mt at 1.66 g/t Au)
- Updated Measured and Indicated Resources of 1,012 koz of Gold (18.4 Mt at 1.72 g/t Au) and Inferred Resources of 66 koz of Gold (1.1 Mt at 1.95 g/t Au)
Then we shifted over to the producing Minera Don Nicolas gold mine in Argentina, where the Las Calandrias area was just brought into the production mix, and where both the Martinetas pit and Phase 1 Underground program, under the Paloma Pit, will be feeding into growing production next year. The Company has grown production from Argentina operations the last 3 years in a row, with 2023 guidance in the 60,000+ range, and 2024 guidance around the 80,000 ounce range. As Monte Do Carmo comes online in late 2025, then the company has a pathway to more than doubling production from 2026 and beyond.
Both projects have substantial exploration upside along their mineralized trends to keep expanding resources. In addition, both Projects also have further value being uncovered at depth, with proposed underground mining scenarios, beyond just the near-surface open pit development and exploration.